Do I owe taxes for my aunt?
Posted 19 December 2012 - 01:12 PM
Posted 19 December 2012 - 01:51 PM
I filed her 2010 income taxes.
Did you sign the return? If so, in what capacity—personal representative of the estate, fiduciary, or what? Was there a refund on the return? If so, what happend to the refund?
She had no "estate"; only a bank account held jointly with me and a small annuity of which I am the beneficiary.
In what state did you and your aunt reside and how was this account held: tenants in common or joint tenants with a right of survivorship? If the former, was there any pay on death beneficiary designation naming you beneficiary?
How did you become the beneficiary of the annuity? Since she didn't have a will, did it pass to you by intestacy or something else?
Am I legally required to pay the additional taxes? I do not disagree with the corrections made by the IRS, but do not want to pay the additional amount if it isn't legally required.
You are not liable to be just because she was your aunt and lived with you prior to her death. But even though she had no formal estate, the IRS may nevertheless claim the assets that would have been part of her estate to pay the tax liability. In addition, if you signed the return as fiduciary/personal representative of your aunt, you might have some personal liability as a result of that, though again usually limited to the value of the assets that your aunt had that would have been available to pay the claim.
Posted 19 December 2012 - 04:42 PM
I want to do the right thing, and honestly do not want any future problem with the IRS.
Posted 20 December 2012 - 12:53 PM
Posted 03 January 2013 - 12:57 PM
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